(9 March 2016, Beijing) CEC Huada Electronic Design Co., Ltd., (“HED”), a wholly owned subsidiary of China Electronics Corporation (stock code: 00085.HK), and Hua Hong Semiconductor Limited ("Hua Hong Semiconductor" or the "Company", together with its subsidiaries, the "Group"; stock code: 1347.HK), a global leading pure-play 200mm foundry, today jointly announced that, HED’s CIU9872B dual-interface chip for bank IC cards fabricated on Hua Hong Semiconductor’s 0.13?m SONOS (Silicon Oxide Nitride Oxide Silicon) eNVM (Embedded Non-Volatile Memory) process platform has obtained an EMVCo security certificate. This symbolizes that the security design and management system of the bank IC chip designed by HED and manufactured by Hua Hong Semiconductor have reached the levels of international security.

The certification was conducted at the Netherlands-based Brightsight Lab, a leading third-party security test organization. With more than 30 years’ experience in security rating and provision of security test and evaluation services for chips, TEE (Trusted Execution Environment), HCE (Host-Based Card Emulation) and SE (Security Element), the lab is the only of its kind that has been approved by Common Criteria (CC), EMVCo and particular payment brands.

CIU9872B is a new-generation dual-interface chip for bank IC cards, featuring high security, performance and capacity. Built on a 32-bit CPU, this design provides user memory space up to 80 Kbytes, supports ISO/IEC 14443 and ISO/IEC 7816 communication protocols, as well as SM1/SM2/SM3/SM4/SSF33 cryptographic algorithms, accommodating requirements of a variety of applications such as finance, social security, transport, healthcare and education.

The EMVCo certified CIU9872B is fabricated on Hua Hong Semiconductor’s 0.13?m SONOS eNVM, a leading process platform that features outstanding stability and reliability, lower power consumption, strong radiation immunity and easier compatibility with standard CMOS technologies. Promising ultra-high write/erase speed of 2 mili-second, ultra-long endurance up to 500,000 write/erase cycles and data retention for 100 years, this process delivers a higher performance-price solution to various applications such as smart cards and MCUs.

"Always committed to product quality and security, HED believes that only market-proven products are compelling,” said Mr. Jiang Shiping, General Manager of HED, “CIU9872B, a dual-interface chip for bank IC cards that just obtained the EMVCo certification, has been widely used in the financial payment area, including cards issued by the Bank of China, China Construction Bank, Agricultural Bank of China, and a few local commercial banks. The aggregate shipment so far is impressive. We are willing to continue to work with our partner —Hua Hong Semiconductor to extend this momentum and create homegrown China chips by enhancing cooperation along the entire value chain.”

“While maintaining momentum in its home market, HED is actively tapping potential in the international market,” said Mr. Jiang Shiping, General Manager of HED, “the security certification this time just represents one of the steps for our going-global journey. We wish to further enhance our technical expertise and product competitiveness to gain a solid foothold in the global market while maintaining leadership in the local market through expanding international cooperation."

“The breakthrough made by Hua Hong Semiconductor in that field demonstrates our process technology and fabrication ability is gaining recognition from prestigious international organization,” said Mr. Wang Yu, Executive Director and President of Hua Hong Semiconductor, “the partnership between Hua Hong Semiconductor and HED could be traced back to 2011, which has generated impressive results in the fields of dual-interface chip for bank IC cards and mobile payment chip. Both parties will collaborate further in terms of technology of advanced process nodes this year.”

“2015 marked the start of China’s migration towards bank IC cards, while in 2016 locally produced chips will face a bigger momentum of commercial rollout and application,” said Mr. Wang Yu, Executive Director and President of Hua Hong Semiconductor, “As the world’s largest smart card IC foundry, Hua Hong Semiconductor will build on its proven expertise in eNVM platform to actively expand its footprint in the area of bank IC chips and work closely with leading smart card IC design houses in China to deliver fabrication process platforms for next-generation bank IC chips which require high integration, performance, reliability, security and low power consumption, to make greater contribution to the ongoing initiative of China-made-chips for bank IC cards.”

About CEC Huada Electronic Design Co., Ltd.
CEC Huada Electronic Design Co., Ltd. (HED), a wholly-owned subsidiary of China Electronics Corporation Holdings Co., Ltd. (Stock Code: 00085.HK), is a professional IC card supplier.

Being one of the companies having the broadest smart card technologies and applications, and most proven strengths in China, HED delivers a compelling portfolio of ICs and embedded security chips widely applicable for government ID, identification, social security, healthcare, financial payment, mobile payment, telecom, public transport, fuel card, online authentication, access control and e-ticketing.

As the pioneer and leader in China’s IC technology field, HED has contributed to establishment of a variety of national and industrial standards, and reported the largest IC chip shipment in China annually. It is recognized as one of China’s top10 IC design houses over the past few years.

Adhering to the proposition of “Talents-oriented and serving the society”, HED collaborates with its partners to shape a better future.

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About Hua Hong Semiconductor Limited
Hua Hong Semiconductor (Stock Code: 1347.HK) is a global leading pure-play 200mm foundry, primarily focusing on research and manufacturing of semiconductors on 200mm wafers for specialty applications, in particular eNVM and power discretes. The Group’s portfolio also includes several other advanced process technologies such as RFCMOS, analog and mixed signal, PMIC and MEMS. According to IHS,
based on total 2015 revenues, the Group ranked second globally amongst pure-play 200mm foundries. The semiconductors Hua Hong Semiconductor manufactures are incorporated into a wide range of products in diverse markets, including consumer electronics, communications, computing, industrial and automotive. Hua Hong Semiconductor uses its own proprietary processes and techniques to manufacture semiconductors of the design specifications for its diverse customers. The Group currently has one of the largest 200mm wafer processing capacities in China through its three fabs in Shanghai, with an approximate total capacity of 146,000 wafers per month as of December 31, 2015. The Group also offers design enablement services facilitating the timely completion of complex designs that are optimized in terms of performance, cost and manufacturing yield on its processes.

Hua Hong Semiconductor’s current business is mainly operated and developed through Shanghai Huahong Grace Semiconductor Manufacturing Corporation (“HHGrace”), which is its subsidiary based in Shanghai. HHGrace was incorporated through the consolidation between Shanghai Hua Hong NEC Electronics Company, Limited and Grace Semiconductor Manufacturing Corporation.
For more information please visit: www.huahonggrace.com